Uber’s losses grew to $1.5 billion last quarter


Fundings and Exits

Uber has given its shareholders an update on the company’s performance and it’s definitely in the red.

The global ridesharing company lost $1.46 billion in just the third quarter. This compares to negative $1.06 billion in the previous quarter.

But net revenue also went up from $1.66 billion to $2.01 billion. Gross bookings grew to $9.71 billion, versus the $8.74 billion in the second quarter.

The numbers were first reported by Bloomberg and a TechCrunch source confirmed. Uber is giving shareholders a glimpse at current financials, in order to help them determine whether they should sell shares in the tender offer that launched Tuesday.

Japanese investment firm SoftBank Group, along with Dragoneer, Sequoia Capital, TPG and Tencent, are looking to purchase up to $8 billion shares from existing Uber shareholders. They want to offer $32.96 per share, more than a 30% discount from the $48.77 the company was last valued. at.

SoftBank has already confirmed that existing shareholders Benchmark Capital and Menlo Ventures intend to sell shares. But sources tell us they might not be willing to sell at SoftBank’s desired share price and that the group of investors may have to offer more.

Other Uber shareholders, including investors and employees, have an opportunity to sell shares if they have at least 10,000 of them. They also need to be “accredited,” meaning they have $1 million in assets or make $200,000 per year.

If the secondary gets done, SoftBank will also be making a $1 billion direct investment in Uber at its last private valuation of nearly $70 billion. Benchmark Capital will also be dropping its lawsuit against former Uber CEO, Travis Kalanick, which related to board appointments.

Uber did not have a CEO last quarter. Since then, Uber has appointed former Expedia CEO Dara Khosrowshahi to the top job. The company has yet to fill the position of CFO.

Uber has had a difficult year filled with lawsuits and public outcry about its company culture.The proposed SoftBank investment could be seen as a turning point, as the company fuels its growth as it gets ready to IPO in 2019.


Featured Image: Spencer Platt/Getty Images

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